This study aimed to find out the impact of corporate governance on bank’s
profitability and how major Palestinian commercial banks performed their corporate
governance concepts and practices from 2012 till 2017. Multiple regression models were
used to do the empirical analysis and; develop two econometric models each model
consisted of one dependent variable and four independent variables. In the first model
Return On Assets( ROA) was defined as profitability indicator and Return On Equity
(ROE) in the second model, while four aspects of corporate governance namely; board size
(BS), the Directors' Ownership of Equity (DEQUITY), the leadership structure (CEO
duality (CEOD) and the Director's educational degree (BDEG) used as independent
variables. The findings and analysis revealed that the smaller board size , the more the
combined leadership structure and the higher the Director's educational degree lead to
better ROA , while results show insignificant relationship between directors’ ownership of
equity and ROA. Also the results revealed that the more the combined leadership structure,
the lower directors’ ownership of equity the more ROE, board size and Director's
educational degree have insignificant effect on ROE.

Title

International Research Journal of Finance and Economics

Publisher

International Research Journal of Finance and Economics

Publisher Country

United Kingdom

Publication Type

Prtinted only

Volume

168

Year

2018

Pages

104-113